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Press Release: Catering and Food Service Contractor Market to Surpass US$ 601.9 Billion by 2026
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Global Catering and Food Service Contractor Market – Insights
Catering is a very critical part of the business, especially for network carriers serving long distances. Meal design and meal planning are important processes of catering services. According to International Air Transport Association (IATA), catering planning and catering operations are important areas of activities of catering services. Growing tourism industry is one of the major factors driving growth of the global catering and food service contractor market. According to the Our World in Data, in 2014, international tourist arrivals across regions including Europe, the Americas, Asia Pacific, Africa, and Middle East was 1.14 billion, which increased to 1.24 billion in 2016.
Moreover, increasing preference for mini buffets is also expected to propel growth of the global catering and food service contractor market. Mini meals are convenient and are packed in disposable trays, which are then dropped off at desired locations. Such meals are significantly preferred for smaller gatherings or when there are space constraints. Moreover, hassle-free set-up of mini buffets has led their increasing adoption compared to normal buffet counterparts.
However, increasing number of online food delivery services is a major restraining factor for growth of the global catering and food service market. Online food services make ordering process easier and convenient, maintain cost transparency including price along with other taxes to be charged, and monitor expenses incurring in real-time. These services enable customers to order through mobile app and explore various options of food without the intervention of contractors. The major competitors of the global catering and foodservice contractors pertaining to online food delivery services include, Food Matters, Zomato, Swiggy, UberEats, Foodpanda, Deliveroo, and others.
Figure 1. Global Catering and Food Service Contractor Market Share, By Application, 2017
Source: Coherent Market Insights, 2017-18
Europe is expected to witness significant market share during the forecast period in the global catering and food service contractor market. Market growth in the region is attributed to increasing number of merger and acquisition activities in the region. For instance, in 2017, CH&Co Group and Harbour & Jones merged, which brought the turnover of US$ 299.46 million. The merger of both the companies was aimed to offer catering services across the U.K. and Ireland. Prior to this, in 2015, Harbour & Jones acquired PCC Ltd along with its two brands namely Fare of London and Principals Catering. The deal made the turnover of over US$ 55.48 million. Therefore, increasing M&A activities in Europe is expected to boost the market growth in terms of revenue.
Asia Pacific is expected to account for a significant market share over the projected period in the global catering and food service contractor market. This is majorly attributed to stringent regulations in the region that promote people towards healthy eating. For instance, In April 2017, the Government of Singapore introduced Whole-of-Government (WOG) Healthier Catering Policy. The policy was introduced to encourage healthier eating at homes, workplaces, and communities in Singapore. According to the policy, government entities in Singapore will be provided with healthy food and drinks at the government organized functions, conferences, trainings, and meetings.
Figure 2. Global Catering and Food Service Contractor Market Share (%), By Region, 2017
Source: Coherent Market Insights, 2017-18
Key players in the market are focused on expanding their businesses via establishing subsidiaries. For instance, in June 2018, Neo Group Limited announced the establishment of its wholly-owned subsidiary, Chilli Manis Catering Pte. Ltd., in the Republic of Singapore. The subsidairy aims to work for food establishments, catering, and manufacturing of cooked-food preparations.
Key players operating in the global catering and food service contractor include, Compass Group Plc., Sodexo, Aramark Corporation, Elior Group, Delaware North, Westbury Street Holdings, Ovations Food Services, Thompson Hospitality, Dine Contract Catering, Olive Catering Services, and others.
The catering and foodservice contractor market is currently driven by the consumer’s inclination towards health and wellness. The rising awareness towards healthy eating is forcing catering and food service companies to provide healthier options in their food menu. According to the Global Wellness Institute, in 2015, the global wellness economy accounted for $3.7 trillion market which increased to $4.2 trillion market by the end of 2017. The market includes the healthy eating, Nutrition and Weight loss sector which accounted for $702 billion of total global wellness economy in 2017.
Market Dynamics
Increasing preference of sustainable diet is a significant factor for the catering and food service contractor market growth. Sustainable diet refers to healthy diet followed by people by taking into consideration its impact on ecosystems and biodiversity. Sustainable foods such as vegetables and fruits are economically fair and are nutritious. Menus provided by caterers are expected to include foods, which are gluten free, flourless, mushroom-less, and shell-fish free.
Furthermore, key players in the market are focusing launching online catering services in order to enhance their market share. For instance, Caterspot offers online catering services from registration, order processing, deciding of meals till cancellation, if required. The company facilitates services of partner caterers and does not offer catering services itself.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
Table of Contents
* Browse 105 market data tables* and 40 figures* on "Global Catering and Food Service Contractor Market” - Global forecast to 2026.
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